defence industrial corridor in uttar pradesh -...

Defence Industrial Corridor in Uttar Pradesh

... विकास की साझेदारी, सुरक्षा की विमे्मेदारी

ADVANTAGE UTTAR PRADESH

Country’s 4th largest state, 3rd largest economy

Home to 16.5% of India’s population

Amongst the top 5 manufacturing state

2nd highest number of SMEs in India

13.26% growth in exports (CAGR) (2012-17)

Largest market and consumerplace

DEFENCE & AEROSPACE SECTORExisting Manufacturing base List of Prominent Ordnance Factories in UP

1. Ordnance Factory, Kanpur

2. Small Arms Factory, Kanpur

3. Field Gun Factory, Kanpur

4. Ordnance Equipment Factory, Kanpur

5. Ordnance Parachute Factory, Kanpur

6. Ordnance Equipment Factory, Tundla

7. Ordnance Factory, Korwa

8. Ordnance Factory, Muradnagar, Ghaziabad

9. Ordnance Clothing Factory, Shahjahanpur

List of Prominent manufacturing units of

HAL

1. HAL Transport Aircraft Division, Kanpur

2. HAL Accessories Division Lucknow

3. HAL Avionics Division Korwa

R&D and Innovation Base

• Key R&D institutes including DRDO, ASERDC-HAL, etc.

• Prominent Forensics Science Laboratories

Others -

1. Bharat Electronics Ltd, Ghaziabad

2. Naini Aerospace Ltd – HAL

Home to prominent PSUs –

Three HAL manufacturing units, Nine Ordnance

Factories, Bharat Electronics Ltd, etc.

Announced by Hon’ble Prime Minister, Shri Narendra Modi at UP Investors Summit in February 2018

Worth INR 20,000 crore proposed in Bundelkhandregion

Estimated to create over 2.5 lakh employment opportunities

The Announcement

DEFENCE CORRIDOR Contours

► Passing through Aligarh, Agra, Jhansi,Chitrakut including Kanpur, Lucknow

► These districts have strong ancillary base tosupport the needs of defence manufacturingand ensure continuous supply of rawmaterials, labour, etc.

► Large parcels of affordable land available inthe Bundelkhand region

► Region is best suited for developingeconomic testing and R&D facilities for thesector

► Nearly 3000 hectares of land to be notifedand purchased

Agra-Lucknow Expressway(operational)

Bundelkhand Exp’way(Proposed Alignment)

Bharatkoop

Kudrail

Upto Aligarh

Primary Catchment

Area~ 50 km

Secondary Catchment

Area~ 100 km

DEFENCE INDUSTRIAL CORRIDOR – UP Catchment Area

Agra-Lucknow Expressway(operational)

Bundelkhand Exp’way(Proposed Alignment)

Bharatkoop

Kudrail

Connectivity

• Air: Operational Airport at Agra

• Rail: Connected directly to National

Network, ~50 Kms from EDFC (Tundla)

• Road: Connected via AL Expressway &

National Highways

Agra Node

Connectivity

• Air: Operational Airport at Kanpur

• Rail: Connected directly to National

Network, ~50 Kms from EDFC (Bhaupur)

• Road: Connected via National Highways &

~65 Kms from AL Expressway

Kanpur

Node

Jalaun

Node

Jhansi

NodeChitrakoot

Node

Connectivity

• Air: Operational Airport at Khajuraho ~200 Kms

• Rail: Connected directly to National Network,

~180 Kms from EDFC (Prempur)

• Road: Connected via National Highway &

proposed Bundelkhand Expressway

Connectivity

• Air: Operational Airport at Kanpur ~125 Kms


~50 Kms from EDFC (Bhaupur)

• Road: Connected via National Highway &

proposed Bundelkhand Expressway

Connectivity

• Air: Operational Airport at Gwalior ~100 Kms


~250 Kms from EDFC (Prempur)

• Road: Connected via National Highway & ~50

Kms from proposed Bundelkhand

Expressway

DEFENCE INDUSTRIAL CORRIDOR - UPSME Base (1/3)

3180

971

630860 745

Rerpairingand Servicing

Metal based EngineeringUnits andElectrical

Machinery

Agro Based RG & Textile

SME Base - Aligarh

857

309

932

188

561

Textile &Apparel

EngineeringGoods

Leatherbased

Electrical,Metal &Mineralbased

Agro based

SME Industry base - Agra

No of Units

DEFENCE INDUSTRIAL CORRIDOR - UPSME Base (2/3)

3189

2428

1970

1396

994

Rerpairingand Servicing

LeatherBased

Ready-madeGarments and

Embroidery

EngineeringUnits andElectrical

Machinery

Agro Based

SME Base - Kanpur

3808

2892

531337 234

Textile &Apparel

Repairing &Services

Agro based &paper

Mineralbased, plastic& petro based

Metal based,Engineering &

electrical

SME Industry base - Lucknow

No of Units

DEFENCE INDUSTRIAL CORRIDOR – UP SME Base (3/3)

2026

1071 1130

628

1074

Textile &Apparel

EngineeringGoods

Agro & Foodbased

Electrical,Metal &Mineralbased

Wood based

SME Industry base - Jhansi

No of Units180

124

9882

40

Agro Based Repairing andServicing

Metal Based(Steel Fab.)

Wood/woodenbased furniture

Ready-madegarments &embroidery

SME Base - Chitrakoot

DEFENCE INDUSTRIAL CORRIDOR - UPStrategy

► Expanding the Ordnance factories in the state

► Mobilising Private investments

► Mobilising the SME ecosystem in the state

► Bridging the market gaps and connect the ancillary units in the state to meet the requirements of Defence PSUs

► Developing the export oriented manufacturing base for defence sector

DEFENCE INDUSTRIAL CORRIDOR – UPEnabling Infrastructure

Existing

Upcoming

► Located on Golden Quadrilateral with excellent road network

► Alongside the catchment area of AKIC and EDFC

► Agra Lucknow Expressway

► Major national & international airports connecting the rest of India

► Strong Logistics infrastructure – at Kanpur, Dadri, Boraki, Varanasi

► Proposed Bundelkhand Expressway linking Chitrakoot to Agra Lucknow Expressway

► Proposed Poorvanchal Expressway linking Lucknow to Ghazipur

► Upcoming international airports at Jewar in NCR

► Proposed NW-1 connecting Allahabad to Haldia port

DEFENCE INDUSTRIAL CORRIDOR - UPInvestment Opportunities

Auto related components &

Automobile manufacturing

for military

Testing facilities -Development

testing range for artillery and other

military equipment

Police modernization,

Forensics Centres

Drones Manufacturing

and Testing facilities

Aircraft/ Helicopter

Manufacturing/ Assembling

Units

► Defence Park at Jhansi, Agra, Kanpur

► Aerospace Park at Lucknow, Kanpur, Agra

► Expansion of Defence Public Sector Units (DPSUs)

Leather & Textile hub at Agra for development of technical textile

Engineering/Electronics manufacturing hub at Agra, Kanpur, Gautambuddha Nagar, Ghaziabad

Indigenisation of items imported

Items_for_indigenization.pdf

DEFENCE INDUSTRIAL CORRIDOR – UP

Proposed UP Defence & Aerospace Manufacturing Policy


Salient Features► Attracting Defence PSUs, Mega and Anchor projects

► Promoting development of Private Defence Parks with plug & play facilities

► More incentives are offered for investments made in Defence Corridor

► Promoting Investments in Bundelkhand & Poorvanchal

► Supporting industry specific incentives including rebate on freight and transportationcharges, for developing R&D and testing facilities, capacity building, towards patent &registration fee is also offered

Industrial Security

Single Window

Simplified Procedures

Easy Labour permits

Quality Power supply

Proposed Defence & Aerospace Manufacturing (D&A) Policy


Incentives to Private D&A Park► Parks providing ‘plug-and-play’ industrial infrastructure, including –

► Manufacturing area (components, sub-components, sub-assemblies, aerospaceparts) and SEZ, Testing centre, Hardware/Embedded Technology Centre,Technology innovation centre, and Housing & Common facility centre

► Developed on >150 acres in Bundelkhand & Purvanchal Region, >100 acres inMadhyanchal & Paschimanchal

► Incentives at par to those given to Private Industrial Parks under UP IIEPP 2017 –


Particular Incentive (as under UP IIEPP 2017)

Loan taken to buy

land

Interest reimbursement @50% of annual interest, for 7years upto INR 50 lakh p.a

per park

Loan taken to build

infrastructure

Interest reimbursement @60% of annual interest, for 7years upto INR 10 crores

p.a with an overall ceiling of INR 50 crores per park

Loan taken to build

common facility

Interest reimbursement @60% of annual interest, for 7years upto INR 5 crores p.a

with an overall ceiling of INR 30 crores per park

Stamp duty 100% exemption to the developer

UP_Industrial_Policy_2017_Engish_Version.pdf


Incentives to D&A Units (1/4)Case to case incentives to –

► Mega units

► Capex >INR 300 crores or atleast 1000 direct employment in Bundelkhand/ Poorvanchal

► Capex >INR 400 crores or atleast 1500 direct employment in Madhyanchal/ Paschimanchal**

► Capex >INR 500 crores or atleast 2000 direct employment in GB Nagar/Ghaziabad

► Anchor unit along with their Vendor units

► Defence PSUs (DPSU) with min fixed capex of INR 1000 crores, located anywhere in the state


Incentive on Land Category

Land on lease at subsidised rates anywhere in the state DPSUs

Reimbursement upto 25% of the cost of land in the notified areas of Defence Corridor Mega units &

Anchor units

Reimbursement upto 15% of the cost of land in the notified areas of Defence Corridor Large units

Reimbursement upto 10% of the cost of land in the notified areas of Defence Corridor MSME units


Incentives to D&A Units (2/4)


Particular Details ( as under UP IIEPP 2017)

Loan taken for plant &

machineryInterest reimbursement @5% p.a. for first 5 years upto INR 50 lacs p.a per unit.

Loan taken to build

infrastructureInterest reimbursement @5% p.a. for 5years upto max INR 1 crore

Loan taken for setting

up Industrial ResearchInterest reimbursement @5% p.a. for 5 years subject to an overall ceiling of INR 1 Crore.

Stamp Duty Exemption 100% in Bundelkhand, Purvanchal region; 75% in Madhyanchal, Paschimanchal (except

GB Nagar, Ghaziabad); 50% in GB Nagar, Ghaziabad

Electricity duty 100% exemption for 10years to new units

SGST reimbursement 90% to MSME for 5years, 60% to large units for 5years, 70% to Mega units for 10years.

EPF reimbursement

50% of employer’s contribution on providing direct employment to 500 or more unskilled

workers, and additional 10% of employer’s contribution on direct employment to 200

skilled and unskilled workers.

UP_Industrial_Policy_2017_Engish_Version.pdf




Particular Details

Tax Incentive100% reimbursement of net SGST on all input material (excluding Aviation Turbine Fuel) for

aircrafts which are brought in specifically for MRO in UP, for 10 years to all new D&A units(Aviation Turbine Fuel is already subsidised under UP Civil Aviation Policy 2017 – Section 7.1.1, 8.1.1, 8.2.1, 8.5.2.1)

Rebate on

Transportation

charges

For transportation of imported equipment, plant/

machinery from logistics parks/harbour / port to

the production site within UP state

Subsidy of 50% of cost, up to max. INR 2 cr, up

to the start of first year of production

For transportation of finished products from the

unit to logistics parks, harbour / port

Subsidy of 30% of cost up to max. INR 1 cr, for

5years from start of commercial production

Setting up ETP 20% reimb of project cost, upto maximum INR 1 cr

Setting up R&D and Testing Centres

10% subsidy on investment > INR 10 cr, @ max INR 10 cr per investment

In case criteria are fulfilled within 2 years of going live, the assistance will be granted retrospectively on fulfilling

following order requirements -

► Centre should either have bagged a direct order** of at least INR 5 cr

► or should be service provider to a manufacturer having a minimum of INR50crore order from authorised**(**from the MoD/MHA/ or equivalent foreign governments/ civilian aerospace supplier or an MRO facility.)




Particular Details

Reimbursement of

cost of tech transfer

100% of cost of ToT reimb to Anchor Units towards first 5vendors, and 50% for next 5

vendors (ceiling of INR 50 lakhs for each vendor unit)

Patent filing fees► 100% reimbursement for domestic patent registration

► 50% reimb for international patent registration subject to max INR 25 lakh

Trade Mark

Registration Fees100% reimbursement subject to max INR 1 lakh

Quality certification

fees 100% reimbursement, subject to max INR 2lacs (only MSME units eligible)

Building Market 50% reimb of cost of participation in international exhibitions / fairs up to max INR 5Lakh

(only MSME units eligible)

Capacity building

► Reimb @INR 10000 p/m per trainee for 6 months, upto max of 50 trainees p.u. p.a. to

units providing on the job training for prescribed courses in D&A sector

► A&D units shall be handed over identified Government ITIs/ Polytechnics

► Universities (in India and abroad) with excellence in A&D training and research to tie up

with universities in the State

THANK YOU

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defence industrial corridor in uttar pradesh -...

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